Customization may very well be one of the biggest reasons why car enthusiasts love cars in the first place. But before you get your car covered with flames or start installing that turbo kit, you need to make sure that you have everything sorted out, including whether your current auto insurer provides insurance for custom cars.
If you want to customize your vehicle or create a restomod, understand that doing so will affect your insurance rates in more ways than one.
There are many variables to consider, such as the kind of modifications you want to do, their extent and costs, and whether or not you’ll have to go through a reputable body shop for the actual installation.
Let’s dive into what you need to know about customized auto insurance.
What You Need to Know About Auto Insurance for Custom Cars
When you customize your car, you automatically increase its value, depending on the types of customizations. While the value of your car under financing may increase, the potential risk it poses to others also increases.
If a part wasn’t installed incorrectly, for instance, the damage it could cause to you and your vehicle if it malfunctions may also pose a risk to other drivers on the road.
There are also certain car modifications that may affect the amount of your insurance coverage. Some of the most common modifications that can raise a red flag include:
- Increasing the horsepower of your engine
- Installing a louder exhaust
- Installing nitrous oxide
It’s important to note that not all of these modifications will affect your coverage. However, it’s best to discuss potential modifications with your auto insurance provider before you complete them.
How will custom car mods affect your rates?
The risks associated with driving a custom car are higher than those of a stock car. This means that the insurance company will charge you more to cover those risks.
Unfortunately, the only way to combat increased premiums is by looking for an insurance company that offers customized coverage.
There are several companies out there that provide coverage for modified cars. Customized insurance policies tend to be a bit more expensive than traditional ones, but the extra cost is worth it. After all, there’s no point in saving a few dollars on premiums now if you don’t have proper coverage when you need it.
Does my current auto insurance provide coverage for custom cars?
It’s important to understand that many conventional auto insurance companies don’t offer customized coverage.
This means that if you have a heavily modified car, your current insurance provider may not be able to help you. Unfortunately, many auto insurance providers won’t cover modified cars at all, but it’s still worth the search and quote comparison.
Finding an Auto Insurance Company That Supports Customized Cars
When looking for an insurance provider, you should check to make sure that they specialize in customized cars and trucks or offer some sort of coverage at the very least.
Rather than just finding any company that offers customized coverage, you should try to find a company that has a good reputation and offers competitive rates.
Customized car insurance plays an integral part in protecting you from the increased risk that comes with modifying your car, so take the time to find the right provider and compare quotes accordingly.
What kind of auto insurance do you need for custom cars?
Customized car insurance is pretty much the same as conventional insurance. However, it provides additional coverage for any aftermarket vehicle modifications.
Your insurance plan could be modified, or some modifications you’re considering may not end up requiring modified coverage. For example, insurance companies likely won’t raise your rates for tinting your windows.
If you have any questions about insurance for custom cars, you can discuss your specific needs with an insurance specialist or consultant.
The Importance of Collision and Comprehensive Coverage
Even if you have customized coverage, it’s a good idea to have collision and comprehensive coverage as well. This is because customized coverage may not cover all of the risks associated with your car.
For instance, a customized coverage rider only covers the added risk that is associated with modified cars.
Luckily, collision and comprehensive coverage are a part of many insurance policies. It’s important to make sure that you have enough coverage for both of these types of policies.
If you don’t, you could be in financial trouble if you cause an accident or damage private property.
Always Use Licensed Professionals for Customizations on Your Car
If you want to protect yourself from as much risk as possible, you should only use licensed professionals for customizations on your car. Licensed professionals are trained in proper installation and modification, which reduces the risk of anything going wrong later on down the road with those modifications.
While it might cost a bit more to use a professional, it’s definitely worth the extra cost. This is especially true if you’re looking for insurance coverage for your car. Some auto insurance companies only cover customizations done by professionals. This means that if you do the customizations yourself, you won’t be able to get coverage.
Ask About Insurance Coverage Before Making Modifications
Before you make any modifications to your car, it’s always a good idea to see if the type of modification you want will impact your insurance coverage or rate.
In many cases, there are some modifications you can make without impacting your current policy. You can ask your insurance company for a written list of what’s allowed under your plan.
If your auto insurer does not provide coverage for certain modifications, you can find insurance for custom cars that you can switch to. This way you won’t have a lapse in coverage or a denied claim in the event that something happens to your car after you finish modifications.
Put in the Time to Find the Right Coverage, or Suspend the Modifications
While certainly an enjoyable passion, customizing cars carries risks that are too great to carry on your own.
Luckily, though, you can protect yourself and your luxury car with customized auto insurance. Make sure you solidify a customized auto insurance plan before actually making the modifications. This way, you’re prepared.
Luke Williams writes and researches for the auto insurance comparison site, AutoInsurance.org. His passions include insurance, car customization, and restomodding.